There is no doubt about it a leasehold flat or house in Feltham is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Feltham will meet the qualifying criteria; nevertheless a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Feltham can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Feltham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter was the the leasehold proprietor of a high value apartment in Feltham on the market with a lease of fraction over 61 years remaining. Dexter on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2010 we were called by Dr L Kelly who, having moved into a one bedroom flat in Feltham in January 2001. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Feltham with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2076. Considering the 50 years left we estimated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of expenses.
An example of a Lease Extension case for a Feltham flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired residue of the current lease was 82.93 years.